Consumer price index
(CPI) is a statistical measure of changes in average retail prices of
commodities bought by a specific group of consumers in a given area in
a given period of time. On the other hand, inflation rate is the annual
rate of change or the year change in CPI. It shows how fast or slow the
CPI increases or decreases. Purchasing power of the peso indicates the
value of the peso in the period under review as compared to the peso in
the base period. It is computed as the reciprocal of the CPI for the
period under review multiplied by 100. These data describe the standard
of living of negrenses, their purchasing capacity and their demands for
commodities and services needed in the province.
Planners, program
managers, and executives both in the government and non-government
organizations can use these data as bases for any poverty alleviation
efforts in the province. These information can also help them evaluate
the programs and projects effectiveness to reduce poverty and uplift
the lives of the people. Investors and other business oriented
organizations can determine their markets for the goods and services
that are in demand in the province.
This chapter
includes data for the region and provinces pertaining to family income,
expenditures and savings. Also included in this chapter are data on
sources of income, distribution of family expenditure, poverty
threshold and incidence, consumer price indices and inflation rate in
the province of Negros Occidental.
Sectoral HIghlights
The 2000 results of the Family Income and Expenditure Survey (FIES)
revealed that the average family income of families in Negros
Occidental increased by 9.25 percent from PhP67,665 in 1997 to 73,923
in 2000.
The main source of income of families in Negros Occidental comes from
wages and salaries with computed 52 percent of the 422,175 families in
2000. 27 percent of these are dependent on entrepreneurial
activities and the remaining 21 percent derived their income from other
sources such as cash receipts, gifts and other forms of assistance from
abroad, pension and retirement, workmen’s compensation and social
security benefits, among others. It can be noted that families
getting their income from other sources increases by 5 percentage
points in 2000 based on the 1997 figure of 16 percent.
Combining all families dependent on agricultural activities both
earning from wages and salaries and entrepreneurial activities, the
total reaches 44 percent of the total families in 2000. This is
lower compared to the 1997 figure which is computed at 55 percent.
From the average income of PhP73,923, 93.67 percent were spent on
various expenditures such as food, clothing, education, transportation
and communications, and other household operations. The remaining
6.33 percent of the income were kept as savings.
Based on the 2000 FIES, 53.6 percent of family income was spent on
food, 8.7 percent on rent/rental value of occupied dwelling unit, 6.2
percent was spent on fuel, light and water, and 3.7 percent on
transportation and communication.
The annual per capita poverty threshold in 2006, or the amount required
to be spent to satisfy the nutritional requirements and other basic
needs of an individual is PhP13,975.
Poverty incidence of families notably decreased by 10.2 percentage
points from 41.6 in 2000 to 31.4 in 2003. Poverty incidence of
population also increased by 2.5 from 39.5 in 2003 to 42.0 in 2006.
The province’s recorded inflation rate in 2008 with 2000=100 is at 9.8
percent.
The purchasing power of the peso weakened to PhP0.70 in 2008 from the
value of PhP0.76 in 2007 at 2000=100.
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